MORE than half of loans made by a Bradford-based business funder went to start-up companies over the past 12 months.

For the first time in its 11-year history, Business Enterprise Fund advanced 54 per cent of its cash to new start-ups rather than to existing small businesses.

Stephen Waud, chief executive of Little Germany-based BEF, said it reflected changing trends in the labour market as job security decreased and more people were turning hobbies and interests into commercial enterprises.

He said: “We are seeing more people coming to us after deciding to go it alone, possibly after being made redundant or lacking job security or else being put onto nil hours and flexible contracts.

“There are some very interesting new businesses , including one entrepreneur who re-tailors second hand clothes and sells them through a leading high street chain. Vintage clothing shops are also popular start-ups, along with food and drink producers .

“In the last 12 months we’ve provided start up loans to almost 200 new businesses and financially supported 160 established SMEs

“While helping established SMEs to grow is vital, it’s great that we are lending more to start-ups as it exactly fits with our ethos and purpose as a social enterprise.

“At BEF we understand that aiding these young businesses in the early stages of development and financial uncertainty can really help build the bedrock of our changing economy.”

BEF,which also as offices in Leeds, York and Darlington, now has the largest pipeline approved loans of £700,000 with another £2 million being processed.

Among start-ups helped by BEF is Quinta Bar and Grill in Ilkley. Opened by Portuguese owner Diogo Filipe, the new venture created five jobs.

BEF, a not-for-profit organisation, has loaned £1.8 million to start-up businesses throughout Yorkshire and the North East and is an official delivery partner for the Government’s Start Up Loans scheme.